A sum of R2m that former president Nelson Mandela gave to Deputy
President Jacob Zuma in October 2000 was used to pay the debts of Zuma and
Schabir Shaik's Nkobi Holdings, the Durban High Court heard yesterday.

The state said Mandela's money had been intended for the kwaZulu-Natal
RDP Education Trust Fund.

The evidence given by KPMG forensic auditor Johan van der Walt
forms one aspect of the financial skeleton of the bribery charges brought
against Shaik. Shaik, who is also charged with fraud, has denied all charges.

Van der Walt yesterday presented a sequence of financial events,
which began with Mandela transferring R2m to Zuma for use in October 2000.

The day after the money was deposited, Shaik, who was Zuma's
financial adviser at the time, instructed Absa Bank by fax to transfer R900 000
from Zuma's cheque account to a one-month fixed deposit account.

This account was in the name of Floryn Investments, a subsidiary
of Nkobi.

Most of this cash was ultimately split between a company called
Kobitech, which he said was about R760 000 in debt at the time, and Floryn .

On December 7 Zuma made out a cheque for R1m to pay a contractor
involved in his Nkandla village traditional housing project. This suggested to
him, said Van der Walt, that Zuma had been under the impression that there was
still money in his account.